Is only 5% deposit on exchange a problem for seller?

Humandoing

Hello, first post here but have been lurking for months!!

We are, I thought, ready to exchange on our first house (FTB so no chain, moving out of rented. Seller is moving into a house with no onward chain - it is a probate sale I think it's called?) .

We have an official mortgage agreement with santander under their help to buy scheme. We have a 5% deposit which we sent over to our solicitors a couple of weeks ago in preparation for exchange.

I gave my solicitor a call earlier just to see if there was any progress on when exchange may be. She said everything is ready to go, but she just has to check whether a 5% deposit is ok with the seller.

I'm now going to be spending all weekend wondering if this is a problem. When I asked the solicitor if it is likely to be a problem, she said she didn't know.

Just hoping someone can reassure me it will likely be ok?!

Thank you

libf

Standard is 10%, but it often varies if the deposit is being passed up the chain or if the total deposit is less (as in your case). You'd still be liable for the full 10% if you pulled out after exchange though.

Only your seller can tell you if they're okay with it or not though, and it may well depend on what the next person up the chain thinks also.

Humandoing

Thank you. I wondered if the house the seller is buying being a probate sale makes any difference?

Lionel_Thinkbag

We're in a similar situation to you, FTB buying a house with no chain. I can't say our solicitor has mentioned it being a problem - they don't have our deposit yet but they're aware of the amount.

I can't imagine it would be a problem, I mean with help to buy 5% mortgages which are for those of us who don't have a 10% deposit, it would be a bit stupid if they're going to go 'by the way you do need 10% after all! Bwa ha ha!'

So I can't say for definite if it will be a problem or not, but if it is then I'll join you down the pub to drown our sorrows because we'll be up poo creek without a paddle :rotfl:

G_M

Is only 5% deposit on exchange a problem for seller?

You are asking the wrong people.

You need to ask the seller.

Humandoing

So I can't say for definite if it will be a problem or not, but if it is then I'll join you down the pub to drown our sorrows because we'll be up poo creek without a paddle

�� thank you, definitely a lot more drinking than usual going on here!!

This is all so stressful!

Humandoing

Our solicitor has G_M, just awaiting a response which obviously won't be until at least Monday now. I know nothing's certain until we have the keys, just trying to reassure myself a bit to try to limit my panicking all weekend.

G_M

Humandoing wrote: »

Our solicitor has G_M, just awaiting a response which obviously won't be until at least Monday now. I know nothing's certain until we have the keys, just trying to reassure myself a bit to try to limit my panicking all weekend.

In that case:

"There, there. It'll be all right. Your seller will accept 5% & you'll be eating roast pork in your new home just as soon as you catch the flying pig....."

Humandoing

"There, there. It'll be all right. Your seller will accept 5% & you'll be eating roast pork in your new home just as soon as you catch the flying pig....."

Have you ever heard of the phrase, if you don't have anything nice to say don't say anything at all?!

Lionel_Thinkbag

Also, from what I can tell the solicitor normally holds onto the deposit until completion anyway - so if you the buyer pull out after exchange you forfeit the deposit. So it's not like the seller gets the deposit in their back pocket at exchange anyway. Obviously have your solicitor check

I would have thought though, that this is something that would have caused a stink - help to buy (phase two) has been around since october 2013 - so if this was a common problem, one would imagine we would have heard of it?

Panicking a little bit myself now :rotfl:

Humandoing

I hope so Lionel_Thinkbag!

I am a worrier so hopefully this is just another example of me worrying without good cause. I'd just be gutted if this fell through because of something like this. If I hadn't phoned my solicitor at 4:30 to 'check everything's ok' id be none the wiser!